Wednesday, July 20, 2016

This ‘Market’ Discounts Nothing 
Except Monetary Cocaine
"The end state of 'something for nothing' finance is the same in both cases. In fact, 'helicopter money' is just a desperate scam emanating from the world’s tiny fraternity of central bankers who have walked the financial system to the brink, and are now trying to con the casino into believing they have one more magic rabbit to pull out of the hat. They don’t. That’s because it takes two branches of the state to tango in the game of helicopter money. The unelected monetary central planners can run the digital printing presses at whim, and continuously 'surprise' and gratify the casino gamblers with another unexpected batch of the monetary drugs .. The market is not trading on a rebound in GDP, revenue growth or a breakout of already elevated profit margins. It’s just high on one more dose of monetary cocaine that in short order will prove to have been not even that."
- David Stockman*
LINK HERE to the essay

1 comment:

Anonymous said...

Negative Yields Infecting Credit Markets as Investors Capitulate

“Investors are going into these assets more because of capitulation,” said Geraud Charpin, a portfolio manager at BlueBay Asset Management LLP in London, which oversees about $58 billion. They’re buying “because cash is too expensive to hold in most European jurisdictions, rather than because they genuinely like the asset and are genuinely increasing their appetite for risk.”